Question: 1.) Consider a $1,000 face value zero-coupon bond which matures in 14 years. What is the fair price for the bond if the yield is

1.) Consider a $1,000 face value zero-coupon bond which matures in 14 years. What is the fair price for the bond if the yield is 3%?

2.) A company offers bonds with a coupon rate of 7 percent paid semiannually. The yield to maturity is 10.5 percent and the maturity date is 12 years from today. What is the market price of this bond if the face value is $1,000?

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